FAMILY IS A KEY POSITIVE INFLUENCE FOR SAVVY SAVERS
• A quarter of over 50s were taught how to save by parents
• More than a quarter of over 50s are regular savers
• A third check interest rates on a monthly basis
Whilst children will be looking to the education system from September 2014 to teach them how to run their finances, the over 50s have prudent parents to thank for their savings habits as a quarter of people have adopted parent’s and family member’s saving strategies, according to research by Saga Savings*.
Years of saving means the over 50s tend to have large pots of money stashed away and Saga estimates that almost six million** over 50s have monthly direct debits in force to transfer money into their savings accounts for rainy days. Even those who can’t afford to squirrel money away regularly are still conscious of the importance of saving, as a third save whenever they can and a fifth try their hardest to set aside money each month but admit that it doesn’t always happen.
Even though the Bank of England base rate is at an all time low, the over 50s are still trying to make their money work as hard as possible. Almost a third check the interest rate on their savings accounts monthly (29%), while more than a quarter check rates annually (27%). And 65% of people will jump ship if another account is offering a better interest rate.
The research suggests that mums and grandmas could pass on the best saving habits, as women are the most likely to have a monthly direct debit in place to transfer money into their savings account (women 29%, men 26%), as well as being the most likely to set money aside for an emergency (women 30%, men 24%).
However, when it comes to passing down saving habits it’s the Scots who are the most likely to adopt their parent’s attitude to saving (27%), while those in the North East are the least likely to take after their family when it comes to saving (22%).
Roger Ramsden, chief executive, Saga Services commented: “While Saga supports adding financial education to the school curriculum, parents and grandparents also have a vital role to play in teaching their children or grandchildren how to manage their money. If they invest their time teaching kids how to spend and save wisely then they are likely to lead more fulfilled lives free from financial worries.”
Notes to Editors
• *Populus interviewed 8,979 adults, all aged 50 and over, online between 15th and 22nd February 2013. Populus is a member of the British Polling Council and abides by its rules.
• **There are 21 million over 50s in the UK. Our survey indicates that 28% of over 50s have monthly direct debits set up to transfer money straight into their savings accounts. 28% of 21 million equals 5.8 million.
Saga offers savings accounts to suit all needs, including fixed rate savings and ISA accounts:
• All accounts offer the option to have interest paid monthly or annually
• Saga Savings accounts are available to UK residents over 50
• All Saga Savings accounts are provided by Birmingham Midshires, a division of Bank of Scotland which is authorised for accepting deposits by the Financial Services Authority.
For further information regarding Saga Savings accounts, please visit www.saga.co.uk/money or call 0800 111 4935